Gerry Weber is set to shutter all of its roughly 40 outlets across Germany. The financially troubled fashion manufacturer from East Westphalia is set to be taken over by a Spanish firm, which intends to revive the brand using its own operational framework.

The beleaguered fashion manufacturer Gerry Weber is set to shutter all of its stores across Germany. The initial creditors’ committee has given the green light to the acquisition strategy of the Spanish fashion firm Victrix, which intends to “revitalise the women’s fashion label through its own frameworks.” The company made this announcement today in Halle, Westphalia. Provisional administrator Lucas Flöther has also granted his approval.

The announcement reveals that a Spanish family-owned enterprise is set to acquire the Gerry Weber brand. In the forthcoming months, the remaining 40 or so Gerry Weber shops and outlets across Germany, along with additional locations in other countries, are set to be shuttered. The new proprietor aims to distribute Gerry Weber women’s fashion across Germany via retail partners that also offer a selection of other brands.

Gerry Weber has been facing a prolonged period of turmoil. Efforts to restructure in both 2019 and 2023 proved unsuccessful, and even significant reductions did not yield the anticipated positive savings impact. In 2023, Gerry Weber shuttered 122 of its 171 company-owned stores and outlets across Germany, resulting in the loss of around 450 jobs. However, the impact of this drastic reduction ultimately fell flat.

The company has reached a standstill, with only the brand poised to persist in the future. The Spaniards, who operate under the fashion label Punt Roma, are likewise assuming control of production.

Fashion manufacturer Gerry Weber, however, which once sponsored a well-known tennis tournament in Halle, Westphalia, is disappearing. How much the family-run company from Mataró near Barcelona is paying for the German women’s fashion brand is unknown. The financial details of the deal are to be kept confidential, it was reported.

“Gerry Weber is a perfect fit for our core brand Punt Roma,” said Victrix Group management. “We are consequently broadening our stance in the upper mid-price segment, particularly in Central and Eastern Europe, where Gerry Weber is well-regarded and recognised.” The swift adaptation of production and various processes to the current Victrix frameworks will guarantee a smooth transition for both retailers and consumers alike.

The fashion industry in Germany is currently facing challenging circumstances. Recently, prominent companies including the department store chain Galeria, fashion retailers Esprit and Sinn, as well as the shoe chain Görtz, have entered insolvency proceedings. The plight of these companies is evident, as a significant number of customers are adopting a more frugal approach due to the prevailing economic downturn.

Concurrently, there has been a significant increase in the costs of energy, rent, and salaries. The circumstances are especially challenging for the physical textile and fashion retail sector, which endured considerable setbacks during the pandemic. Business has indeed seen a resurgence, yet it has yet to attain the heights it once enjoyed. “Gerry Weber aligns seamlessly with our core brand Punt Roma,” stated the management of Victrix Group. “We are therefore broadening our stance in the upper mid-price segment, particularly in Central and Eastern Europe, where Gerry Weber is well-regarded and has significant brand recognition.” The swift adaptation of production and various processes to the established Victrix frameworks will guarantee a smooth transition for both retailers and end consumers. The fashion industry in Germany is currently facing challenging circumstances.

Recently, prominent companies including the department store chain Galeria, the fashion retailers Esprit and Sinn, as well as the shoe chain Görtz, have entered insolvency proceedings. These companies are facing challenges as a significant number of customers are adopting a more cautious approach to spending in the current economic climate. Concurrently, there has been a significant surge in the costs of energy, rent, and salaries.

The circumstances are especially challenging for the physical textile and fashion retail sector, which endured considerable losses throughout the pandemic. Business has indeed improved since then, yet it still falls short of the heights previously attained.